Smart Investment Strategies with Fidelity Funds in 2024

Investing is a popular approach to growing your wealth, but choosing the right platform can be challenging. Fidelity Investments stands out as a trusted provider, supporting around 50 million clients in making well-informed financial choices and managing employee benefits. Its diverse range of investment options helps minimize risks, making it an excellent choice for both new and experienced investors. By understanding its advantages and following some strategic tips, you can optimize your investment journey in 2024.

Key Advantages

Signing up with Fidelity opens access to several notable benefits, including:

1. Expert Support and Educational Resources

Fidelity boasts a network of over 200 branches offering in-person advice, alongside extensive educational tools and round-the-clock support via phone, email, and chat. Its Online Learning Center uses innovative technology to tailor educational content based on your investment habits, empowering you with knowledge and confidence.

2. Varied Investment Options

Fidelity provides a wide selection of funds, including options tailored for retirees and seniors. Two commonly chosen types are:

IRAs

The Roth IRA enables tax-free growth and withdrawals, funded with after-tax dollars, offering flexibility for withdrawals without penalties.

The Traditional IRA offers tax-deferred growth, potentially reducing taxable income during contributions, ideal for retirement planning.

Rollover IRAs facilitate transferring funds from former employer plans into an IRA without tax penalties, preserving your investment's tax advantages.

Mutual Funds

Fidelity is renowned for its mutual fund offerings, including zero-transaction-fee index funds like Fidelity Zero. One highlight is the Fidelity Total Bond Fund (FTBFX), which invests predominantly in investment-grade bonds, providing stable income and diversification. This conservative fund aims to appeal to investors seeking reliable fixed income.

3. Other Investment Vehicles

Beyond mutual funds and IRAs, Fidelity allows trading in stocks, bonds, ETFs, forex, and cryptocurrencies such as Bitcoin and Ethereum. Investors can also buy fractional shares, enabling diversification even with limited capital. The platform supports trading in foreign stocks via ADRs, broadening investment opportunities globally.

4. Zero-Commission Trading

Fidelity offers commission-free online trades for U.S. stocks, ETFs, and options, alongside zero-expense ratio index funds. Some mutual funds may require minimum investments, so consulting with a Fidelity advisor can clarify specific account requirements.

5. Competitive Cash Management

Uninvested cash in Fidelity accounts is automatically placed in money market funds, offering an average yield of 4.97% during a recent period. While attractive, these returns are market-dependent and can fluctuate.

6. Robust Trading Platforms

Fidelity.com: An easy-to-navigate website suitable for all experience levels, providing comprehensive access to investment tools and resources.

Active Trader Pro: A customizable desktop platform featuring advanced order management, technical analysis tools, and the ability to trade over-the-counter securities and IPOs.

Investment Tips for Beginners

Identify your investment goals and the amount you're willing to invest, considering your financial situation and retirement timelines.

Select the appropriate account type—be it a brokerage account, 401(k), or IRA—according to your needs.

Start with a manageable sum and ensure your current expenses and savings priorities are met.

If uncertain, seek guidance from financial professionals or use Fidelity's robo-advisors like Fidelity Go® for managed investment solutions.